Hendrix was a curator of vintage guitars. He had such a reputation that if he ever showed interest in the guitar the price would start climbing. As a result, Hendrix hired Vaughan as an agent to help locate and purchase a 1950’s Gibson Les Paul (a type of guitar). Vaughan was given the authority to purchase the guitar with a maximum of $15,000.
Vaughan bought a Gibson Les Paul for $17,000 from Clapton. Hendrix was shocked when he saw the cost of the guitar. Hendrix immediately fired Vaughan.
Not having a better idea of what to do with the guitar, Hendrix put it on display in his guitar shop with a $18,000 price tag. When the best offer he got for the guitar was $14,500, Hendrix returned the guitar to Clapton. Hendrix told Clapton that Vaughan had exceeded his authority in purchasing the guitar, and he demanded that Clapton refund the $17,000 that Vaughan had paid for the guitar.
Does Clapton have to refund the money for the guitar because Vaughn exceeded his authority? Do you think that is fair?